Business Ethics Reading Material summary

Business Ethics Reading Material
- Introducing business ethics by Crane & Matten (4th edition) Chapter 1
- Code of ethics by Fledderman Chapter 2
- Article: Why sustainability is now the key driver of innovation by Nidumolu et al. (2009)
- Article: Social sustainability by McGuinn et al. (PP. 12-25)
- Introducing business ethics by Crane & Matten (4th edition) Chapter 5

, INTRODUCING BUSINESS ETHICS BY CRANE & MATTEN (4TH EDITION)

CHAPTER 1 – INTRODUCING BUSINESS ETHICS

Oxymoron = the bringing together of two apparently contradictory concepts

Business ethics = the study of business situations, activities, and decisions where issues of right
and wrong are addressed

Relationship between ethics and law




Morality = the norms, values, and beliefs embedded in social processes which define right and
wrong for an individual or a community
Ethics = the study of morality and the application of reason to elucidate specific rules and
principles that determine morally acceptable courses of action
Ethical theories = codification of these rules and principles

Relationship between morality, ethics, and ethical theory
Morality  Ethics  Ethical theory  Potential solutions to ethical problems

Reasons for business ethics
1. Business has huge power within society
2. Business has the potential to provide a major contribution to our societies
3. Business malpractice has the potential to inflict enormous harm on individuals,
communities, and the environment
4. Demands being placed ono business to be ethical by its various stakeholders are
becoming more complex and challenging
5. Employees face significant pressure to compromise ethical standards
6. Business daces a trust deficit